Crossroad Vintners buys its HQ building with SBA 504 loan from Stock Yards Bank & Trust and Indiana Statewide CDC

Fourteen-year-old Crossroad Vintners transitions from renter to owner by buying its office and warehouse building in Indianapolis. A loan from the U.S. Small Business Administration 504 program helped owners Nolan Smith and Bill Kennedy finalize the purchase of the 25,000 square-foot building at 6429 Guion Road in northwest Indianapolis. Stock Yards Bank & Trust and Indiana Statewide Certified Development Corporation provided the SBA 504 loan. Smith says, "Buying the building we've been using for three-and-a-half years helps us save significant money on occupancy cost. The SBA 504's generous loan structure gives us more flexibility with our cashflow which we can use for the building (improvements & debt reduction) in good times and for Crossroad Vintners — our main business — when times are lean." Crossroad Vintners distributes wine and spirits to restaurants and retailers throughout an ever-increasing portion of Indiana. Crossroad handles dozens of labels of wine, whiskeys and other spirits from the U.S. and foreign producers. Crossroad employs 20 people. Eleven are in sales and are situated around Indiana's major cities. This is up from four sales personnel in 2010. Smith says sales increased in that time from $3.5 million the first year to an estimated $7 million this year. Indiana Statewide CDC works with local Indiana lenders to issue SBA 504 loans to help owners of expanding or startup small businesses buy real estate, buildings and equipment. SBA 504 loans can give small business owners long-term, fixed rate financing similar to commercial loan terms available for large companies. Jason Benson of Stock Yards Bank says, "The 504 loan was the best option for Crossroad because it allowed for Nolan and Bill to retain some of their additional down payment they can use for other needs. They can utilize that savings for additional growth in Crossroad Vintners." Benson adds, "Our bank likes to offer options to our clients, and many of them choose 504 financing. From the bank's standpoint, it's a good way to help build our client portfolio and also help clients reach their goals." Background: Indiana Statewide CDC (www.cambridgecapitalmgmt.com) has provided more than $530 million to 1,260 Indiana companies since 1983, creating or saving more than 26,595 jobs, and is the most prolific CDC in Indiana. Executive Director Jean Wojtowicz says, "SBA 504 loans help small businesses grow because borrowing companies can put as little as 10 percent down and receive a low, fixed interest rate for as long as 25 years. The SBA guarantees bonds sold privately to finance a portion of the loan. With the guarantee, we can offer more favorable loan rates than generally available to small businesses." Stock Yards Bank & Trust (www.syb.com) is a wholly owned subsidiary of Stock Yards Bancorp, Inc. with company assets totaling $3 billion, serving the Louisville, Kentucky, Indianapolis, Indiana, and Cincinnati, Ohio markets. Founded in 1904. Crossroad Vintners (www.crossroadvintners.com) distributors of fine wine and spirits to retailers and restaurants in Indiana. Crossroad Vintners sources wine and spirits from small to medium sized producers who share Crossroad's commitment to high quality products and services.